Cantor Morning News | Morning @ Cantor

� The program devised to purge troubled real estate assets from the financial system has generated an estimated return of 15.5 percent for taxpayers so far.

� The Obama administration made the so-called Public-Private Investment Program a centerpiece of its plan to help unlock the frozen credit markets in the spring of 2009

o Fed Watch:

o Bernanke speaks at 10 am Friday

o Bernanke, Trichet Economic Paths May Diverge at Jackson Hole - BBG

� Federal Reserve Chairman Ben S.Bernanke and European Central Bank President Jean-Claude Trichet, who united to fight the worst global recession in six decades, may be diverging over the outlook for their economies.

o World Central Bank? Uneasy Role for Ultra-Easy Fed � CNBC

� Federal Reserve officials gathered in Jackson Hole, Wyo. may hear some noise from their international counterparts about side-effects of the central bank's ultra-loose monetary policy.

� growing fear a rallying yen

� Currencies in Latin America have surged, raising worries about the cost of local exports

� http://www.cnbc.com/id/38872566

o Fed reports balance sheet assets of $2.3T on Wednesday, ($12.7B) w/w and +$226.2B y/y�

o Money flows: :

o AMG data reports equity fund outflows of ($4.6B) in w/e 25-Aug vs outflows of ($9.1B) in w/e 18-Aug; third straight week of outflows.

o Investors Pull $7.1 Billion From Stock Funds Globally - EPFR Global

� Investors withdrew a net $7.1 billion from equity funds tracked worldwide in the week to Aug. 25 and put some $5.2 billion into bonds amid concern economies in the U.S. and Europe are losing momentum, EPFR Global said.

� �A net $5.4 billion was redeemed from U.S. stock funds, while inflows into emerging markets were the lowest in 13 weeks, EPFR said in an e-mailed statement.

� Developing-nation bond funds took in $1 billion, on course for a record-setting year, while U.S. bond funds drew $2.5 billion

o How to think about a sovereign debt crisis from FT Alphaville

o Arnold Kling, a blogger at EconLog and libertarian economist at George Mason University, has written a paper exploring the possibility of a US sovereign default in the medium term, which he defines as 2015 through 2035.

o But instead of just running through the math, Kling has gone further and waded into the murky waters of bond investor psychology.

o He is especially focused on the �trigger point� at which investor confidence in a country�s fiscal health changes suddenly from high to low

o IMF's Lipsky Does Not See Double-Dip US Recession � CNBC link

o top International Monetary Fund official said on Thursday strong corporate profits and moderate income growth should prevent the U.S. economy from slipping into a new recession.

o Krugman Says U.S. Officials Are �Sugar Coating� Economic State

o �This isn�t a recovery, in any sense that matters,�Krugman, a Princeton University professor, wrote in his New York Times column published today. �And policy makers should be doing everything they can to change that fact.�

o Why another fiscal stimulus won't do

o By Mohamed A. El-Erian oped in WP

o http://www.washingtonpost.com/wp-dyn/content/article/2010/08/26/AR2010082605262.html

o Public Pensions and Our Fiscal Future -� oped in WSJ by By ARNOLD SCHWARZENEGGER

o Few Californians in the private sector have $1 million in savings, but that's effectively the retirement account they guarantee to many government employees.

o Autopsy of Fannie Mae and Freddie Mac from NYT > Business

o Fannie and Freddie did not cause the housing bubble, according to a new report issued by their overseer, the Federal Housing Finance Agency

o High-Frequency Trading Needs New Rules: Official from CNBC

o Why It's Getting Harder to Hire Foreign Workers from BusinessWeek

o M.B.A. Applications Muted � WSJ link

o Applications for full-time programs saw a 2% decline for the incoming class and part-time program applications fell 7%. But specialized and executive degree programs applications rose.

o Boeing Pushes Back 787 Dreamliner First Delivery Date � CNBC link

o Rolls Royce [RR.UK] are lower after Boeing announced plans to delay the delivery date for the first 787

o Airbus Cuts A350 Production Forecasts, Les Echos Says

o The world�s biggest commercial-aircraft maker now plans to make 10 A350s in 2013, compared with a previous target of 18, the newspaper said. Airbus cut forecasts for 2014 and 2015 to 40 and 60 from 51 and 83 respectively

o In Spain, Iberia [IBLA.SP] is declining, despite better than expected earnings.

o Consumer negative;� JCrew Shares Plunge After Outlook Disappoint�.

o �JCG -7.1% (earningsOK, cautious outlook )

o Lihir Gold �.disappointing results from Lihir Gold (LGL.AU).

o Posco raises stainless prices 5.9% for September to reflect rising raw material costs

o RIMM India says any Research In Motion solution will need to go through field trials, satisfy country's technical experts - Reuters

o Macro Positive: ��Surprise slowdown in US credit card losses from FT.com

o US credit-card losses are falling faster than expected, with the six largest card issuers expected to earn nearly $10bn more in the coming 12 months than predicted, says a study by Moody�s

o BP� dn 2%..was one of the biggest fallers, as its handling of the Gulf of Mexico oil spill and questions over safety procedures on the Deepwater Horizon rig continued to make headlines. Bloomberg reported that executives at the oil giant told U.S. investigators they didn't know who was in charge of the rig before it exploded in April, killing 11 workers. Dow Jones Newswires, citing an internal BP email, reported late Thursday that the well was about 45% over budget a month before it exploded.

o CoreLogic: 11 Million U.S. Properties with Negative Equity in Q2

o Note that the slight decline in homeowners with negative equity was mostly due to foreclosures. First American CoreLogic released the Q2 2010 negative equity today. CoreLogic reports that 11 million, or 23 percent, of all residential properties with mortgages were in negative equity at the end of the second quarter of 2010, down from 11.2 million and 24 percent from the first quarter of 2010.

o http://www.mortgagenewsdaily.com/aroundtheweb/169195.aspx

o Political Stories:

o Gallup Tracking Poll: Obama Approval Rating at 43%

o Wired youth forget how to write in China and Japan

� A poll commissioned by the China Youth Daily in April found that 83 percent of the 2,072 respondents admitted having problems writing characters.

� As a result, Li says that she has become almost dependent on her phone

� http://www.breitbart.com/article.php?id=CNG.74f06613ea91a1f1041b96c96477427f.561&show_article=1

o Canada Thwarts Bombing Attempt� - WSJ

� Canadian authorities said they found and foiled a terrorist bomb-making plot by three men -- one allegedly with links to the Afghan conflict and another who auditioned for "Canadian Idol.''

o The Pentagon will seek an increase of 1% over inflation in the next budget amid concerns over mounting deficits.� WSJ

o The Taliban hinted it might attack foreigners helping in Pakistan's flood response, saying that their presence was "unacceptable." WSJ

o Karzai said U.S. plans to start withdrawing troops from Afghanistan next year had boosted the Taliban's morale. WSJ

o Mexican troops hunt killers of 72 migrants from Reuters

� �Mexican troops fanned out in the remote countryside near the Texas border on Thursday as they hunted the perpetrators of the worst massacre in the country's escalating drug war.

o Venezuela's Chavez scoffs at cancer rumors from Reuters

� Venezuelan President Hugo Chavez on Thursday mocked rumors that he was suffering from cancer as wishful thinking by his "squalid" enemies.

o UK faces new wave of homegrown attacks: from Reuters

� �Britain faces a new wave of attacks from poorly trained but highly motivated homegrown militants, as the al Qaeda threat shifts from big, sophisticated bomb plots to acts by individuals, a report said on Friday.

o Jimmy Carter gains release of U.S. activist Aijalon Gomes who was detained in North Korea

o North Korea tells Carter wants to resume nuclear talks from Reuters

� �North Korea's number two leader has told former President Jimmy Carter that the reclusive state is committed to denuclearizing the peninsula and resuming six-way talks, the North's state news agency said on Friday.

o Ex-judge: Possible criminal charges for NY gov from Wash Post

� �A special investigation has concluded that Gov. David Paterson's testimony about his plans to pay for World Series tickets last year was "inaccurate and misleading" and warrants consideration of criminal charges by a prosecutor

o Netanyahu proposes bi-weekly meetings with Abbas from Reuters

� �Israeli Prime Minister Benjamin Netanyahu has proposed meetings with Palestinian President Mahmoud Abbas every two weeks to improve the prospects of Middle East peace talks, a diplomatic source said on Friday.

o Napping Gets a Nod at the Workplace from BusinessWeek

o CIA making secret payments to members of Karzai administration � WP link

� The CIA is making secret payments to multiple members of President Hamid Karzai's administration, in part to maintain sources of information in a government in which the Afghan leader is often seen as having a limited grasp of developments, according to current and former U.S. officials.

o Fund Stories

o Cocoa's Drop Pressures a Big Wager� � WSJ link

o Mr. Ward's Armajaro Holdings Ltd. shook up the commodities market in July by buying a $1 billion cache of cocoa, enough to make 15 billion Hershey's milk-chocolate bars. But since Mr. Ward made his audacious bet, cocoa prices have dropped 26%.

o Two hedge funds run by Armajaro, including its CC+ Fund, which focuses on cocoa and coffee, lost about 6% of their value during the first two weeks of August, according to investors who have viewed the returns. And since then, prices have continued to decline

o The funds remained up about 12% on the year through the middle of August,

o http://online.wsj.com/article/SB10001424052748704913704575454011349605640.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

o Blackstone Repays Real Estate Fees as Slide Forces Clawbacks - BBG

o Blackstone Group LP is refunding some performance fees earned during the commercial real estate boom, the first time fund investors have clawed back cash from executives at the world�s largest private-equity company

o Blackstone and some of its managers returned $3 million in carried interest to investors in Blackstone Real Estate Partners International LP during the second quarter, said a person with knowledge of the payments. They may pay back an estimated $15.7 million this quarter to another fund, Blackstone Real Estate Partners IV, according to the person and a regulatory filing.

CANTOR TRADING RECAP

o Equity Recap

o We came in to overseas markets that were mixed to higher but it wasn�t enough to persuade buyers to get involved. Jobless and continuing claims were a little better than expected but the numbers are still ugly and don�t look to be improving anytime soon � and the weak Kansas City Fed data reversed and bump we got from the jobs numbers, still seeing concerns about Spain�s fiscal stability (Spanish court ruled that some of the government�s tax-collection methods are illegal). The action we saw here was light and uneventful, we saw a short squeeze early which prompted the sellers to pick their spots but nothing aggressively. Still not seeing any reason for buyers to take long term action, and we can expect more light trading ahead of Bernanke due to discuss the outlook for the economy tomorrow at the central bank�s annual symposium in Jackson Hole. Fortunately M&A action is creating opportunities to be involved, HPQ announced a revised proposal to acquire 3Par (PAR) for $27 per share in cash, HPQ also acquires Stratavia. Internally buy and sell names were pretty even, the breadth of the market had 1 � declining issues for every 1 advancing. Technically 1050 support didn�t hold, we get more @ 1040/44 intra-day price low from 5/25 and 6/8 as well as 76.4% fib retracement from jul low and aug high, intra-day.

o Birinyi Associates Inc. lowered its year-end forecast for the S&P 500 by 7.5 percent to 1,225, saying companies from Wal-Mart Stores Inc. to Procter & Gamble Co. are unlikely to erase their declines this year.

o Billy Clark and Team

o Investment grade Recap

o Michael Salemo

o CMBS recap

o Very interesting day with AMs taking center stage.� Saw ~$300mm in AMs for sale from a diverse group: several Insur Cos, a bank, HF and a MMer.� Despite the selling prices continue to rocket higher.� The top performer was '06 AMs up several points this week.� For example, BACM 06-2 AMs traded with a $99 handle which is a spread differential of ~205bps to the duper.� Further, clean '05 AMs are trading at a 170bp pick to dupers which is 35bps tighter in the past week but still ~20bps back of the tights we saw in April.� However, the overall yields are over 100bps lower vs April levels.�� Do rising tides lift all ships?� To what extent will the weak AM/AJs and back end reremics participate in the AM rally?� Totally different buyer base to the well trading AMs.� GG10 dupers and back end reremics are lagging huge.�� Heavy selling today- saw a total of $770mm in BWICs with 41% from buy and hold accounts and 20% from hedge funds.� The basis started the day strong with GG10s in 15bps but finished unchanged at +325/$103-27.� Not bad given the fact that IG was out 2bps and HY CDS off $1/3pt.� Im not seeing buyers for spready dupers or Tier 2 dupers such as GG9s; however, the basis has a strong tightening bias to it.� Anyone looking for GCCFC 07-GG9 A4s?� Im trying to sell $10mm.� I remain short term negative until I see some brighter economic numbers and/or a rally in European Sovr CDS.

� GEORDIE WALKER

o Convertible Wrap

o Although most people seem to be away, trace volumes were at a decent level again today. Once again customer sell volume exceeded customer buy volume. The top five names were a large part of the volume as we often see when trading activity slows down. Sandisk stock continues its downward spiral and both converts followed. The new issue hasn�t seen par since they were issued. Great Atlantic & Pacific (GAP) stock was up today on a news story quoting Tengelmann�s CEO as saying "We believe that the company needs to be combined with another, bigger company. Sales are too low," Karl-Erivan Haub told reporters on Thursday. Convertible Bonds traded unchanged from yesterday. Market direction remains mixed in our market as trading remains very name specific and event driven.

o Tom Fazio: ADCT 3.5%-17, CX 4.875%-15, CIEN 0.25%-15, DOLE 7% pfd, MGM 4.25%-15, SNDK 1%-13, USU 3%-14

o Thomas Fazio

o Rates Commentary

o The Treasury market opened better bid overnight with strong overseas buying concentrated in the intermediate sector of the curve. Treasuries quickly came off these levels with the surprising better than expected claims data, initial claims 473K, 17K lower than expected, continuing 4456K 39K lower than expected. The market quickly settled in and had a quiet tone throughout the remainder of the morning. A small bid developed leading into the remainder of this weeks coupon supply $29Bln 7 year notes which set the tone that bidder participation would be plentiful. The 7 year came through by .8bps at 1.989%, a large 56.7% awarded to indirects, the highest percentage since April 2010 and over 14% higher than last month, 8.6% to directs and a strong 2.98 bid to cover. Today�s auction was allotted at a record low yield for a 7 year and thus completed the trifecta this week as all three coupon auction came at record low yield levels.

o Treasury market flipped flopped around after the auction ultimately finding a bid later on as equity markets retreated with the Dow Jones trading and closing below 10K, short covering and post auction relief. At 3PM benchmarks were higher in price across the curve with yields ~1-4bps lower.

o The Fed conducted their fourth purchase today concentrating in the 2021-2040 sector purchasing 1.415Bln of 8.455Bln submitted, their main purchase was in the 8% 11/21 as they bought 1.135Bln.

o Tomorrow market participants will be closely eyeing GDP and Chairman Bernanke's speech in Jackson Hole focusing on any indications that the Fed will announce a larger quantitative easing program.

o Primary Dealer

SECTOR NEWS WITH MACRO IMPLICATIONS

ENERGY

o Obama�s Drilling Ban No Longer Needed, Report Finds -� BBG

� President Barack Obama�s moratorium on deep-water drilling is no longer needed because new rules reduce the risk of an uncontrolled spill, according to a report for a panel investigating BP Plc�s blowout.

� �Rules issued in June by the Interior Department �provide an adequate margin of safety to responsibly allow the resumption of deep-water drilling,� according to the report today from the Bipartisan Policy Center, a Washington-based research group. The rules, if followed by BP, Apache Corp. and other drillers, and enforced by regulators, �will achieve a significant and beneficial reduction of risk.�

o Ackman attackin' BP oil from NY Post

� Hedge fund honcho Bill Ackman, who's making a bold move to take over Stuyvesant Town-Peter Cooper Village, is also betting against troubled oil giant BP. Ackman told investors in his fund, Pershing Square Capital Management, that he's shorting BP's debt through the use of credit default swaps...

o Why Chesapeake Should Regain Its Energy from Barron's

� Down 60% in the past two years, the natural-gas producer's stock is priced to buy.

o CHK Barron's Weekday Trader is positive on Chesapeake Energy

o SUF SulphCo files $122.18M mixed shelf

o ZN Zion Oil & Gas starts drilling the Ma'anit-Joseph #3 well in its Joseph License Area

o Rosneft Deal for German Refineries Could Help BP from DealBook

� Rosneft of Russia is said to be in advanced talks to buy a piece of four German oil refineries, The Wall Street Journal reported.

o SMA Solar (S92.GR) traded higher on talk of a bid from First Solar (FLSR) at �110/ share SA

o Gazprom downgraded to neutral from buy at Bank of America Merrill Lynch

o KNOC says Dana Petroleum's H1 results contains no new information that alters its view on value; says �18/share offer remains full and final

UTILITIES

INDUSTRIALS

o Boeing Pushes Back 787 Dreamliner First Delivery Date � CNBC link

o Airbus Cuts A350 Production Forecasts, Les Echos Says

� The world�s biggest commercial-aircraft maker now plans to make 10 A350s in 2013, compared with a previous target of 18, the newspaper said. Airbus cut forecasts for 2014 and 2015 to 40 and 60 from 51 and 83 respectively

o The Pentagon will seek an increase of 1% over inflation in the next budget amid concerns over mounting deficits.� WSJ

o AIR FRANCE-KLM TO INCREASE WINTER CAPACITY 2-3%, TRIBUNE SAYS

o ABAT Advanced Battery Tech announces polymer lithium-ion phosphate battery supply contract with Hengmin Opto-electrical Tech

o NX Quanex reports Q3 EPS $0.27 from continuing ops

o PH Parker-Hannifin files mixed shelf of indeterminate amount

AUTOS

o Toyota to Recall 1.3 Million Cars in US, Canada

o Geely is looking at retooling a nearly finished plant in China to make Volvos, part of a turnaround plan for the Swedish auto brand.� WSJ

o China�s SAIC shows interest in GM float from Financial Times

� The notion that the �new GM� might attract prominent foreign shareholders such as SAIC should come as no surprise for a company that sold 72 per cent of its vehicles outside the US last year

o Fiat's Marchionne says ties with U.S. dealers 'never been better' from Automotive News

� Fiat SpA CEO Sergio Marchionne said today the Italian carmaker's relations with U.S. dealerships 'have never been better' and applications to sell Fiats in the U.S. have exceeded the company's target.

o Visteon seeks court OK for $700 million exit financing from Automotive News

� U.S. auto parts supplier Visteon Corp. has asked a federal bankruptcy court to approve $700 million in financing so it can exit its 15-month bankruptcy, court documents filed on Wednesday show. A hearing before the U.S.

o Saab owner Spyker posts loss from FT.com

� Dutch boutique sportscar group lost �139m after tax in the first half in its first set of results since acquiring the Swedish car brand from GM

o DAIMLER: S&P raises outlook to 'stable'

o MGA:� Magna: Court Ruling On Dual-Share Appeal Expected By Monday

� http://online.wsj.com/article/BT-CO-20100826-714194.html?mod=WSJ_latestheadlines

TRANSPORTS

o WSJ: Iberia Swings Into the Black

o TZOO Travelzoo surpasses 1M subscriber milestone in Germany

o AMR AMR Corp to fight FAA fine - WSJ

MATERIALS

o BHP Billiton (BLT LN)/ Potash Corp (POT CN) BHP Billiton�s takeover bid for Potash Corp. of Saskatchewan Inc. faces an obstacle in the shape of Canpotex, the pricing and marketing cartel created by Potash, Mosaic, Agrium Inc. almost 40 years ago, the Financial Times reported.

� Canpotex matches supply with demand to keep potash prices high; BHP Billiton has said it plans to run Potash Corp.�s mines at full capacity if its bid succeeds, a policy that would disrupt that arrangement. Jim Prokopanko, Mosaic�s chief executive officer, told the FT that Canpotex ensures a secure supply of potash for farmers globally; Mike Wilson, his counterpart at Agrium, said his company intends to maintain the arrangement and BHP Billiton would be �crazy to leave it.� This stance helps Potash Corp. in its campaign to persuade Canadian regulators and politicians to block the takeover bid under the Investment Canada Act, which requires bidders to show that their plans would bring �net benefit� to Canada, the newspaper said.

o WY Weyerhaeuser to distribute 324M shares to pay for the stock portion of special dividend declared 12-Jul

o Lihir Gold �.disappointing results from Lihir Gold (LGL.AU).

o Lihir posts first-half profit from Business Spectator

� Gold miner maintains FY11 production guidance.

o Posco raises stainless prices 5.9% for September to reflect rising raw material costs

TECH/MEDIA/TELECOM

o RIMM India says any Research In Motion solution will need to go through field trials, satisfy country's technical experts � Reuters

o NZ +15.2% (earnings)

o PAR +6.7% (HPQ increases offer to $27 per share from $24)

o OVTI -4.2% (earnings)

o IRF -3.1% (earnings)

o LAVA +5.6% (earnings)

o HPQ, DELL: HPQ trumps DELL again as 3PAR bidding war escalates- Reuters

o http://www.reuters.com/article/idUSN2618580320100826

o PAR: WSJ analyzes the 3Par bidding war

o http://online.wsj.com/article/SB10001424052748703959704575453223591767404.html

o BBI Blockbuster tells Hollywood studios its-preparing for mid-september bankruptcy- WSJ

o GAME: Outspark confirms it is in deal talks, but can�t confirm Shanda spec- GameBeat

o FCC: Government appeals ruling on FCC indecency rule- AP

o Limewire: FTC drops LimeWire ID theft investigation- Reuters

o MSFT, AAPL, GOOG: Microsoft to spend over $500m to catch up to iPhone, Android- AppleInsider

o Samsung tablet PC aims to compete against the mini iPad- Digitimes

o Solar: Ontario solar market booms, but local sourcing mandate could limit growth- iSuppli

o FLEX Flextronics expected to ship 12-15 million notebooks in 2011- Digitimes

o DRAM: Weak PC sales further drag down DRAM contract pricing in 2H August- inSpectrum

o NFLX, AAPL: Netflix iPhone App Released, Following iPad Version- eWeek

o INTC, INFN: Intel, Infineon Near Deal for Mobile Chip Business- eWeek

o Studios sue to stop advertising on pirate web sites- Reuters

o RIMM: India says BlackBerry must give access or face ban- Reuters

o http://feeds.reuters.com/~r/reuters/technologyNews/~3/Fu4qEY3e_Hw/idUSTRE67P0VT20100827

o Lenovo to develop game consoles in China- Reuters

o CSCO Cisco Buys ExtendMedia To Help Internet Video Kill Cable Companies- Silicon Valley Insider

o MOT: Icahn Increases Motorola Stake to 10.4%- WSJ

o MSFT: Microsoft Broadens �Halo,� Seeks to Top $600 Million Predecessor- BBG

o It�s been a while since customers lined up outside stores at midnight to buy a Microsoft Corp. product. That may change on Sept. 14, when the company releases �Halo: Reach,� the fourth installment of its Xbox video-game series

o NOK: Nokia�s Credit Rating in Jeopardy on Falling Profit, Bonds Show- BBG

o Nokia Oyj�s credit rating is at risk on concern that its profit slide may deepen as its struggles to take on Apple Inc.�s iPhone

o TWX, DIS: Time Warner Cable, Disney Talks Said to Focus on ESPN3.Com Fees- BBG

o Disney is seeking a fee of about 10 cents a month per Web customer for ESPN3.com, said one of the people, who declined to be identified because the talks are ongoing. Time Warner Cable is resisting the fee

o Facebook Accused of Using Child Members� Names for Marketing- BBG

o RIMM Offers India Compromise to Avoid BlackBerry Ban- BBG

o Research In Motion to lead an industry forum in developing ways to balance the country�s security needs with customers� privacy requirements

o RIM said yesterday it wants to find ways to address the government�s requests, while making sure its customers� communications are secure

o Solar bid Spec: SMA Solar traded higher on talk of a bid from FSLR First Solar at �110/ share- SA

o NOVL- Q3 mostly in line with neg preannouncement. NOVL did not provide guidance. NOVL once again cited uncertainty over their ongoing review of various alternatives designed for shareholder value as a major impediment, and the reason for lack of guidance. Novell reviewed its agreement with VMW VMware. Linux product revenue declined sequentially for the second consecutive quarter owing to Microsoft renewal pressures

o ARUN- better Q4 on the back of strong product growth. The addition of over 900 new customers in the Q was a huge positive aand couldl be for Qs to come. The number was a record and is the third straight Q of very strong growth. Guidance for Q1 looks better.

o NZ- beat and raise Q2. Mgmt also made it a note to mention an improving pipeline that could drive further upside in the future. Guidance was raised on broad based strength across all verticals.

o OVTI- Strong Q and GMs were the story coming in very strong in the Q. OVTI could be poised to benefit from strength in the iPhone and new touch technology. Guidance looks mostly in line, but there appears to be room for upside.

o SLH- solid Q4 and FY guidance looks in line. Mgmt is cautiously optimistic on recent trends.

CONSUMER

o J. Crew�JCG -7.1% (earningsOK, cautious outlook )

o Surprise slowdown in US credit card losses from FT.com

� US credit-card losses are falling faster than expected, with the six largest card issuers expected to earn nearly $10bn more in the coming 12 months than predicted, says a study by Moody�s

o Nestl�'s Ground Attack on Coffee � WSJ link

o Nestl� is making a $487 million push to increase the quantity and quality of its coffee, training thousands of farmers over 10 years and providing them with new coffee trees

o Cocoa's Drop Pressures a Big Wager� � WSJ link

o The funds remained up about 12% on the year through the middle of August,

o http://online.wsj.com/article/SB10001424052748704913704575454011349605640.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

o BXC Cerberus extends cash tender offer for Bluelinx Holdings to 10-Sep

o SAI SAIC awarded a maximum $500M ID/IQ DLA contract

o MGPI MGP Ingredients declares dividend of $0.05 per share

o WTM White Mountains Insurance Group authorizes additional repurchase of 600K common shares

o ZHIC Zheng Hui Industry files amended S-1; adds Rodman & Renshaw as an underwriter��

o CPLA Capella Education names Steven Polacek as SVP and CFO

o DENN Denny's appoints Robert Rodriguez COO; effective no later than 13-Sep

o UFI Unifi, Inc announces it will seek stockholder approval for reverse stock split

o GEO GEO Group COO Wayne Calabrese to retire, effective 31-Dec

o VPRT Vistaprint announces decision of court of appeals affirming dismissal of purported class action lawsuit

o Michaels Stores reports Q2 total sales $831M vs. $807M y/y��

o BEBE Bebe Stores reports Q4 EPS

o SSI Stage Stores increases quarterly dividend by 50.0%

o HAIN on CNBC�Irwin Simon, chairman, president and CEO of Hain Cellestial (HAIN), reminds Cramer that with 67% of all Americans obese, including 32% of children, there is a huge market for selling organic and natural foods. Cramer notes that the company remains in the middle of a great long-term trend and he continues to be bullish on the stock.

GAMING, LODGING, & LEISURE

o TZOO Travelzoo surpasses 1M subscriber milestone in Germany

o Micors�MCRS +9.4% (earnings)

FINANCIALS

o Card Firms Scramble for Profits� � WSJ link

o Executives at the nation's biggest issuers of plastic are trying to figure out how to make money in a business that is shrinking while getting more costly to operate.

o Surprise slowdown in US credit card losses from FT.com

� US credit-card losses are falling faster than expected, with the six largest card issuers expected to earn nearly $10bn more in the coming 12 months than predicted, says a study by Moody�s

o TD Ameritrade Gets Lift from Buyback Deal from TheStreet.com

� Shares of TD Ameritrade rose in after-hours action after the online broker disclosed a deal to repurchase up to 12 million of its common shares from Barclays.

o I.R.S. to Drop Suit Against UBS Over Tax Havens from DealBook

� The Internal Revenue Service said Thursday that it would drop a closely watched civil lawsuit against the Swiss bank giant UBS after the Swiss government said it was on course to hand over details on thousands of American clients suspected of using their accounts to evade taxes.

o I.C.B.C. and BOC Set for Slower Growth from DealBook

� Industrial and Commercial Bank of China and Bank of China, two of the top Chinese lenders, signaled a peaking of earnings growth after strong second-quarter profits, as they slow their lending and focus on asset quality.

o COMMERZBANK says no concrete plan for capital hike � S&P

o WSJ discusses headwinds for credit card industry�

o Six largest credit card issuers expected to earn nearly $10B more this year than predicted - FT�

o ABK Ambac Financial files to withdraw $1B mixed shelf originally filed 1-Apr-09

o STSA Sterling Financial/WA completes 20-Aug announced $730M recapitalization effort

o TICC TICC Capital files $50M mixed shelf

o AMTD TD Ameritrade enters into agreement with Barclays for structured repurchase of up to 12M shares

o DLLR Dollar Financial reports Q4 EPS

o AXS Axis Capital Holdings CFO David Greenfield will resign effective 30-Nov

o AIG American International Group decides not to sell strategic stake in AIA before IPO � Reuters

o UEPS -5.6% (earnings)

REAL ESTATE

o 30-Year Mortgage Rate Hits Another Record Low

o Fewer borrowers were behind or in foreclosure in the second quarter, but the number of newly distressed mortgages increased.� WSJ

o Autopsy of Fannie Mae and Freddie Mac from NYT > Business

o Fannie and Freddie did not cause the housing bubble, according to a new report issued by their overseer, the Federal Housing Finance Agency

o Public-Private Investment Program:�

o A Big Surprise: Troubled Assets Garner Rewards from NYT

� The program devised to purge troubled real estate assets from the financial system has generated an estimated return of 15.5 percent for taxpayers so far.

� The Obama administration made the so-called Public-Private Investment Program a centerpiece of its plan to help unlock the frozen credit markets in the spring of 2009

o CoreLogic: 11 Million U.S. Properties with Negative Equity in Q2

o http://www.mortgagenewsdaily.com/aroundtheweb/169195.aspx

o VCC Velocity Commercial Capital files $175M IPO through Credit Suisse, Barclays, and UBS

o Velocity is focused primarily on originating and acquiring SBCRE loans. As of 30-Jun-10, the company has originated 1,264 SBCRE loans with an aggregate principal balance of approximately $475.9M and acquired 128 SBCRE loans with an aggregate principal balance of approximately $69.0M. Average loan balance in the portfolio at 30-Jun was approximately $391,000. Velocity's proposed symbol on the NYSE is VCC.

HEALTHCARE

o J&J Recalls Hip Implants � WSJ link

o J&J's DePuy orthopedic-device unit is recalling hip replacement parts implanted in about 93,000 people world-wide because of the high rate of repeat surgeries needed.

o SONO SonoSite received FDA clearance for LumenVu Catheter Guidance System

o GORX Geopharma's Chairman Jugal Taneja and CEO Mihir Taneja resign; effective 26-Aug

o LH, AET Laboratory Corp discloses filing of suit by Aetna

o ADUS Addus HomeCare CFO Francis Leonard resigns; effective 30-Nov

o XNPT Xenoport announces resignation of President William Rieflin

o IMMU Immunomedics reports Q4 EPS

o IDRA Idera Pharmaceuticals files $75M equity shelf

o VNDA Vanda Pharmaceuticals initiates phase 3 study of tasimelteon

o IMGN Immunogen says guidance is no longer valid following the FDA's Refuse to File letter to Genentech

o BLTI Biolase Technology President and CEO David Mulder resigns

o ISRG on CNBC..Cramer says that Intuitive Surgical (ISRG) is a case of a broken stock, but not a broken company. He adds that the company's DaVinci surgical robots are still selling strongly, and there is still ample room for growth. He goes on to note that he would wait for a $240 a share bottom before he would start buying

OTHER STORIES

o Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com

o ��+ HAIN, GPRE, ISRG, AAPL, MELI and COST

o - CIB

EUROPE TRADING WRAP

o Energy:

o �BP dn 2%..was one of the biggest fallers, as its handling of the Gulf of Mexico oil spill and questions over safety procedures on the Deepwater Horizon rig continued to make headlines. Bloomberg reported that executives at the oil giant told U.S. investigators they didn't know who was in charge of the rig before it exploded in April, killing 11 workers. Dow Jones Newswires, citing an internal BP email, reported late Thursday that the well was about 45% over budget a month before it exploded.

o Dana Petroleum (-0.2%). 1H figures show an improvement on previous year, no comments on the KNOC bid, saying a detailed response will be issued on September 8th.

o Heritage Oil (+1.3%). 1H Figures please the market, company say they are seeking acquisitions and new opportunities.

o Tullow Oil (-5.4%). The Ugandan government has repossessed the Kingfisher Oil field, claiming the company failed to apply for a production licence, Tullows ongoing battle over Capital gains tax from their purchase of Heritage Oils stake is felt to be an influence also.

o Healthcare:

o NOVN VX +1% gets FDA approval for Tekamlo/ gets approval for Tasigna in Switzerland

o RMV LN +1.7% figs turns a profit versus prior loss / Fee increase in march helping revenue

o EI FP -2.8% figs net inc

o TMT

o Aegis report 1H op profit �61.1mln sees 2010 op profit in line with expectations,1H revenue �663.3 v �636.7 sees modest improvement in op margin.

o Alcatel gets contract from Korea�s SK Telecom no financial details given

o LAGARDERE raises FY10 media guidance

o COMMERZBANK says no concrete plan for capital hike � S&P

o VOPAK 1H beats consensus, ups FY outlook

o BETER BED 1H broadly in line

o D'IETEREN 1H sales ahead of expectations

o OMEGA PHARMA 1H below expectations

o TESSENDERLO 2Q beats forecasts

o FRONTLINE 2Q op. and net profit beats consensus

o FLUIDRA: 1H EBITDA rises 30.2% y/y

o IBERIA: Posts narrower-than-expected 1H op loss

o SOLARIA: 1H net profit falls 85% y/y, keeps guidance

o AEGIS returns to growth in 1H, sees FY in line

o COMPUTACENTER: 1H PTP climbs 16.3%

o REGUS: Tough 1H, but ahead of estimates

o RIGHTMOVE: Interim figures beat ests, dividend up 67%

o Airbus Cuts A350 Production Forecasts, Les Echos Says

ASIA TRADING WRAP

o Japan

o � NKY+0.95%, TPX +0.96%

o � NKY rebounded, erasing earlier loss after report PM Kan will announce new steps to deal with the strong yen at the end of the day, prompting short-covering. Meanwhile, investors remain watchful of US economic data later in the day. The Fed chairman will speak at a meeting of central bankers and financial officials in Jackson Hole and US revised 2Q GDP will be released later today.

o � Stocks rose across most sectors led by oil & gas, industrials, consumer, materials and tech

o � Exporters rebounded after the yen fell following report PM Kann will announce new measures to deal with the strong yen by the end of the day: autos +1.24%, CE +1.85%, precision +1.90%.

o � Traders +1.16% after commodities prices rose

o � Best performing sectors on the TPX: rubber products +2.26%, textiles & apparels +2.05%, oil & gas +1.97%; worst performing sectors: insurer -0.62%, airline 0.00%, pharma +0.16%

o Hong Kong

o � HSI -0.07%; HSCEI -0.36%

o China

o � SHCOMP +0.28%; SZCOMP +0.85%

o � Stocks fluctuated closing marginally higher. Turnover on the SHCOMP fell to 80.17B yuan from 105.66B yuan yesterday

o � Stocks rose across most sectors led by health care, consumer, telecom, oil & gas and industrials. Financials and utilities fell

o � Health care +1.44% after the Shanghai Securities News reported China may announce a five-year plan to boost the nation�s pharmaceutical distribution industry

o � Xinjiang-based stocks rose. The China Securities Regulatory Commission will hold a meeting in Xinjiang and may introduce measures to help companies in the region sell shares and promote mergers and restructuring, the Shanghai Securities News reported

o � Banks -0.15%. China Business News report the country�s loan target won�t be relaxed this year and will be maintained at 7.5 trillion yuan and its loan target in 2011 won�t be lower than this year�s level, according to central bank advisor Xia Bin

INVESTMENT BANKING

M&A

o WSJ analyzes the PAR 3Par bidding war��

o http://online.wsj.com/article/SB10001424052748703959704575453223591767404.html

o HPQ� trumps DELL again by 11% as 3PAR bidding war escalates- Reuters

o Hewlett-Packard Co (HPQ.N) raised its bid for data storage company 3PAR Inc (PAR.N) to $1.8 billion, dealing a blow to Dell Inc's (DELL.O) $1.6 billion effort to win a rapidly escalating bidding war.

o The after-hours share price suggested some investors expect an even higher offer, though analysts deemed it unlikely that Dell would bid too much more since its last proposal of $24.30 was but a sliver above HP's first offer of $24.

o http://www.reuters.com/article/idUSN2618580320100826

o ARG Airgas reiterates that Air Products (APD)'s $63.50/share offer is grossly inadequate

o BHP readies charm offensive to woo POT Potash owners- Reuters

o After dousing expectations he would sweeten his hostile bid for the fertilizer giant, BHP CEO� Marius Kloppers and his other executives were also preparing to brief their own investors on four continents after delivering the miner's richest half-year profit in two years

o http://www.reuters.com/article/idUSTRE67G1R620100826

o In POT Potash battle, Chinese players weigh bid- Globe & Mail

o China is emerging as the pivotal player in discussions around a bid for Potash Corp. that would be rich enough to rival giant miner BHP Billiton�s� $38.6-billion (U.S.) hostile offer

o A handful of state-owned Chinese companies, including chemical conglomerate Sinochem Group and energy firm China National Offshore Oil Corp, is considering a potential bid for the world�s largest potash producer.

o http://www.theglobeandmail.com/globe-investor/potash/in-potash-battle-chinese-players-weigh-bid/article1686824/

o BHP faces potash cartel backlash- FT

o MOS Mosaic and AGU Agrium, the partners of PotashCorp in Canada�s fertiliser cartel, have launched a campaign defending the industry�s pricing and marketing arrangements in a move that could impede BHP Billiton�s $39bn takeover bid for POT PotashCorp

o http://www.ft.com/cms/s/0/13f300cc-b13a-11df-b899-00144feabdc0.html?ftcamp=rss

o Fast Money Pours Into Potash, but Influence Limited- Dealbook

o Fast money is building in Potash after BHP Billiton�s $39b hostile bid, but the sheer size of the potential deal could limit the sway arbitrageurs and hedge funds have on the outcome

o More than 145 million Potash shares have been traded since the Canadian fertilizer company said last week that BHP had made a $130-per-share buyout offer

o http://dealbook.blogs.nytimes.com/2010/08/27/fast-money-pours-into-potash-but-influence-limited/

o Insurance Deals Head for Biggest Year Since Peak of M&A Boom- BBG

o Insurance takeovers are headed for the biggest year since the peak of the last merger boom as financial-services firms from Bank of America Corp. to Aegon NV of the Netherlands jettison assets

o Deals in the industry have jumped 60 percent to $44.8 billion so far this year, up from $28 billion in the same period of 2009

o Rosneft Deal for German Refineries Could Help BP- Dealbook

o Russia�s Rosneft is said to be in advanced talks to buy a piece of four German oil refineries

o The group is reportedly near a deal for a 50 percent slice of Ruhr Oel which it would acquire from Petroleos de Venezuela at a purchase price falling somewhere from $1 billion and $2 billion

o http://dealbook.blogs.nytimes.com/2010/08/27/rosneft-deal-for-german-refineries-could-help-bp/

o Bain Capital expected to Buy Air Medical-WSJ- Reuters

o Private equity firm Bain Capital LLC is expected to buy Air Medical Group Holdings for almost $1 billion

o The talks between Air Medical, the largest independent provider of air medical services, and the PE firm were in the final stage on Thursday but the deal could still fall apart

o http://www.reuters.com/article/idUSN2622832520100826

o For beleaguered insurance giant AIG, it may be $30 or bust- NYPOST

o Chief Executive Robert Benmosche is asking potential investors to pony up roughly $30 a share for stakes in AIG's Asian insurance unit, AIA, ahead of AIA's planned public offering

o The per-share asking price has become a sticking point in negotiations, according to sources, as Benmosche and bankers court heavy-hitting investors to buy "cornerstone" stakes for the planned listing on the Hong Kong exchange.

o http://www.nypost.com/p/news/business/sticky_share_price_dVDONsRZtVRHFPOeKjyb6J?CMP=OTC-rss&FEEDNAME=#ixzz0xnarGMhg

o Manulife, ACE among bidders for NY Life Asia- Reuters

o Canadian insurer Manulife Financial Corp and Switzerland's Ace are among bidders for New York Life Insurance Co's Hong Kong, Taiwan and South Korean assets that are up for sale, sources said, in a deal valued between $800 million and $1 billion

o Unlisted NY Life is pulling out of the three marginal Asian markets and has mandated Deutsche Bank to run the auction

o http://www.reuters.com/article/idUSTRE67Q0EL20100827

o BRK/A Berkshire may buy rest of Munger's WSC Wesco- Reuters

o Warren Buffett's Berkshire Hathaway Inc announced plans to buy the 19.9 percent it does not own of Wesco Financial Corp (WSC.A), a company run by Berkshire Vice Chairman Charlie Munger, in a transaction now valued at about $514 million.

o http://www.reuters.com/article/idUSTRE67P40E20100826

o ONGC examining legal, contractual fallout of Cairn de- Economic Times

o ONGC on Thursday said it is examining legal and contractual implications of the Cairn-Vedanta deal, but refused to say if it will make a counter offer.

o http://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/ONGC-examining-legal-contractual-fallout-of-Cairn-deal/articleshow/6442589.cms

o Dana delays takeover defence- FT

o Dana Petroleum will hold back from announcing the purchase of a package of North Sea assets with its interim results on Friday, in a move to delay South Korea�s national oil company launching a raid for the UK oil explorer�s shares

o Korea National Oil Corp, which last week made a �1.87bn hostile takeover offer for the explorer, could breach insider trading laws if it buys Dana shares after the South Korean company learnt of Dana�s plans to buy �240m of assets from Suncor during talks between the two companies

o http://www.ft.com/cms/s/0/6fe2317e-b143-11df-b899-00144feabdc0.html

o P.E. Investors to Buy ING�s Canadian Properties- Dealbook

o A pair of private equity investors will buy ING Summit Industrial Fund, a portfolio of light industrial properties in Canada, for 2b Canadian dollars, the Dutch bank ING said Friday

o ING owns 50 percent of Summit outright, and 7.8 percent via an Australian fund that sold the other 50 percent to the buyers, private equity group KingSett Capital and Alberta Investment Management Corporation

o http://dealbook.blogs.nytimes.com/2010/08/27/p-e-investors-to-buy-ings-canadian-properties/

o Private-equity firms $ink teeth into dentistry- NYPOST

o In recent weeks private-equity firms have been bidding for two of the largest national chains of dentists' offices as they drill further into the space

o In fact, a PE firm is close to winning the auction for Syracuse-based Aspen Dental with a winning bid likely to stretch past $500 million. A separate auction for the slightly larger Kool Smiles chain is well underway

o http://www.nypost.com/p/news/business/private_equity_firms_ink_teeth_into_5HBGAj0ju7eQM0bIPPhCaJ?CMP=OTC-rss&FEEDNAME=

o STT State Street May Buy Bank of Ireland Investment Unit- Reuters

o No agreement has been reached for the unit, which controlled 25 billion euros ($31.8 billion) of assets as of April 16, and a sale may take months, said two of the people

o State Street Global Advisors, said in an interview published Aug. 3 that the indexing specialist is looking for acquisitions to expand actively managed investments and cut reliance on passive funds.

o http://www.businessweek.com/news/2010-08-27/state-street-may-buy-bank-of-ireland-investment-unit.html

o Boralex bid inadequate, say trust unit holders- Reuters

o wo unit holders in Boralex Power Income Fund opposed the revised bid from Canadian alternative-power producer Boralex , with one of them threatening legal action if an "acceptable proposal" was not received by Monday.

o http://www.reuters.com/article/idUSSGE67P0KP20100826

o Cybersecurity firm ARST ArcSight for sale- WSJ

o Cybersecurity firm ArcSight (ARST.O) has put itself up for sale and could be bought by a technology giant such as Oracle (ORCL.O), Hewlett-Packard (HPQ.N) or IBM (IBM.N)

o Talk of a possible acquisition drove the firm's shares up 29.7 percent to $36.63 on Nasdaq. The Journal reported that a deal could fetch more than $40 per share, valuing the company at $1.4 billion or more

o http://www.reuters.com/article/idUSN2621563420100826

o Outspark confirms it is in deal talks, but can�t confirm GAME Shanda spec- GameBeat

o Outspark, a massively multiplayer online game publisher that brings Asian games to the U.S., confirmed it is in talks about being acquired. But the company had no comment that Shanda Games is about to purchase it.

o Susan Choe, chief executive of San Francisco-based Outspark, confirmed in a phone call that the company has been pursued by suitors in recent months. She said that �the talks are progressing.�

o http://games.venturebeat.com/2010/08/26/outspark-confirms-it-is-in-deal-talks-but-cant-confirm-shanda-rumor/

o AMTD Shares of TD Ameritrade rose in after-hours action after the online broker disclosed a deal to repurchase up to 12 million of its common shares from Barclays

o TNT's M&A exuberance runs out of steam- Reuters

o TNT's shares will underperform its peers until it convinces investors that the split of its moribund mail unit from its more lucrative express division will attract buyers that value them more

o http://www.reuters.com/article/idUSTRE67Q19R20100827

o Hiker CEO Kang leads KNOC on acquisition trail- Reuters

o "Because it's there," probably the three most famous words in mountaineering, may equally capture the South Korean chief executive's attitude as he leads state-run Korea National Oil Corp in the hunt for energy resources against the likes of China's giant CNOOC and India's ONGC

o http://www.reuters.com/article/idUSTRE67Q0N320100827

o INTC close to buying IFX wireless biz � (hit yest)�BBG

o Icahn Increases MOT Motorola Stake to 10.4%- WSJ

o http://online.wsj.com/article/SB10001424052748703959704575454532358987318.html

o SMA Solar (S92.GR) traded higher on talk of a bid from First Solar (FLSR) at �110/ share SA

$ RAISING

o 2010 a busy year for IPOs: 171 companies have filed- USA Today

o So far this year, 171 companies have filed plans to go public. It's only August, but that already ranks this as the busiest year for initial public offering filings since 2007

o While most in the IPO pipeline are big companies such as automaker General Motors, there also are many up-and-coming firms that could use the fresh capital to generate jobs

o http://www.usatoday.com/money/markets/2010-08-27-ipo27_ST_N.htm

o AIG American International Group decides not to sell strategic stake in AIA before IPO - Reuters

o GM�s Akerson Placates Investors to Protect $16 Billion IPO- BBG

o http://www.bloomberg.com/news/2010-08-26/gm-s-akerson-placates-investors-to-protect-16-billion-ipo.html

o China�s SAIC shows interest in GM float- FT

o Last week Hu Maoyuan, chairman of SAIC, raised speculation that China�s most powerful domestic carmaker might take a stake in General Motors� upcoming initial public offering.

o Mr Maoyuan said that SAIC �will watch GM�s IPO closely, and think carefully if we should purchase the shares or not�.

o http://www.ft.com/cms/s/0/bd9ecff4-b12e-11df-b899-00144feabdc0.html?ftcamp=rss

o Glencore Plans to Spin Off Kazakh Unit- Dealbook

o Glencore, the commodities trader based in Switzerland, said in its first half financial report that it was planning to list some of its gold operations, which are said to be worth $5 billion.

o The company said Thursday it planned a �partial spin-off/IPO of Kazzinc�s gold unit during the course of 2011.� Glencore owns 50.7 percent of Kazzinc.

o http://dealbook.blogs.nytimes.com/2010/08/27/glencore-plans-to-spin-off-kazakh-unit/

o Imperial Plans IPO� - National Underwriter

o Imperial Holdings Inc., Boca Raton, Fla., plans to list itself on the New York Stock Exchange under the symbol IFT. To date, it has not announced the timing or pricing of its stock offering. It plans to raise $287.5m in the offering

o http://www.lifeandhealthinsurancenews.com/News/2010/8/Pages/Imperial-Plans-IPO.aspx

o Coal India to launch IPO on October 18- The Economic Times

o Coal India will launch its initial public offering, through which it aims to raise as much as $3 billion, on October 18, the chairman of the world's largest coal miner said on Thursday

o Coal India will kickoff roadshows for the offering on Tuesday in the southern Indian city Chennai and in overseas markets a week later

o http://economictimes.indiatimes.com/markets/ipos/Coal-India-to-launch-IPO-on-October-18-Chairman/articleshow/6443869.cms

o Is the IPO Market Warming up to GNOM Genomics?- GenomeWeb

o After years of being non-existent, recent activity suggests that the IPO market may be opening up to the sequencing space. But whether that will extend to the broader �omics market is debatable

o http://www.genomeweb.com/dxpgx/ipo-market-warming-genomics

o Freescale Weighs IPO to Ease Chipmaker�s $7.9 Billion in Debt- BBG

o Freescale Semiconductor Inc.�s chips are found in the guts of everything from cars to Kindles. Yet it�s better known these days as an example of private equity�s ambitions and the dangers of leverage

o Over the past two years, Freescale Chief Executive Officer= Rich Beyer has cut jobs, closed plants, and negotiated with bondholders to lower what was once a $10 billion debt burden

o VCC Velocity Commercial Capital files $175M IPO through Credit Suisse, Barclays, and UBS

PRICINGS

o Initial Offerings

o SRGV SurgiVision Inc 3.6m share IPO expected to price 8/24 via Rodman: Price Talk $5

o FULL Full Circle Capital Corp 2.8m share IPO expected to price 8/25 via Ladengburg: Price Talk $8-10

o Secondary Offerings

o No secondaries currently on the agenda for next week

NEWS��

o U.S. firms struggling to raise funds- Reuters

o A confluence of factors, including poor returns and limited partner investors still smarting from the financial crisis, has made it increasingly difficult for venture capital firms to raise new funds

o Money flowing into venture funds slowed to a seven-year low in the second quarter, as just 38 U.S. venture capital funds raised $1.9 billion

o http://www.reuters.com/article/idUSN2615939520100826

o BBI Blockbuster tells Hollywood studios its-preparing for mid-september bankruptcy- LA Times

o Today, its senior bonds have lost more than half of their value, and the company is warning it may have to file for Chapter 11 bankruptcy protection, or in the worst case, liquidate

o http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/08/blockbuster-tells-hollywood-studios-its-preparing-for-midseptember-bankruptcy.html

o Weak Firms Pile On Debt�and Trouble � WSJ

o Many firms with speculative-grade credit ratings are tapping a record high-yield bond market to repay existing debts. They also are refinancing their loans, pushing out maturities and nabbing lower interest rates. This "kick the can" approach has paid off for companies that investors left for dead just 18 months ago, including Rite Aid Corp., MGM Resorts International and auto supplier Tenneco Inc

o "Junk-bond" deals this summer have yielded around 8.6%

o That is lower than a year ago, when these yields were around 10%, and a far cry from the more than 20% that investors demanded during the financial panic in late 2008.

o http://online.wsj.com/article/SB10001424052748704913704575454000740426466.html?mod=WSJ_hpp_sections_business

o Financials: ABK Ambac Financial files to withdraw $1B mixed shelf originally filed 4/1/09

o Healthcare: IDRA Idera Pharmaceuticals files $75M equity shelf

o Energy: SUF SulphCo files $122.18M mixed shelf

o Services: TICC TICC Capital files $50M mixed shelf

o PH Parker-Hannifin files mixed shelf of indeterminate amount

TODAY�S EVENTS

o CONFERENCES

o AVCJ Infrastructure Finance & Development Asia - India Summit - Aug 26, 2010 - Aug 27, 2010

o CFA Institute / ICMA: International Fixed Income and Derivatives Programme - Aug 21, 2010 - Aug 27, 2010

o Incisive Media Infrastructure Finance & Development Asia - India Summit - Aug 26, 2010 - Aug 27, 2010

o JPMorgan Brazil Retail, Education and Healthcare Investor Days - Aug 26, 2010 - Aug 27, 2010

o JYSKE Bank Global Wealth Management Seminar - Aug 25, 2010 - Aug 29, 2010

o Macquarie Securities North Asia Corporate Day - Aug 26, 2010 - Aug 27, 2010

o National Investment Banking Association Conference - Aug 24, 2010 - Aug 27, 2010

o TODAY�S EVENTS

o Shareholder Meetings

� IXYS, VRX

o ECONOMICS

o 0830 GDP

o 0830 Personal consumption

o 0955 U of Mich Confidence index

o EARNINGS

o Materials

� NOEC, CHOP

o Consumer/Retail/Education

� TBAC, TIF, ZLC, CLCT, SPGZ

o Financials

� GROW, FAC, KFFB, COBK

o Healthcare

� GENT, IMMU, POSC, CO

o Industrials

� TIK, LB, HURC, SHE, TAYD

o Media

� PRVT

o Transports

� FRO

o Tech/Telecom

� FTLK, MEDG, VIP

***All eco data from Bloomberg and DJ

Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal.